Effect of Sourcing Strategy on Performance of Iron Sheet Manufacturing Firms in Nairobi County, Kenya

Abstract

In Kenya, procurement is a major factor in the country's social and economic advancement. However, it is vulnerable to hazards that could result in the loss of money, products, and services, particularly when appropriate procurement practices and principles are not followed. The purpose of this study was to examine the effect of procurement strategies- specifically, the outsourcing strategy on the performance of iron sheet manufacturing companies located in Nairobi County, Kenya. The study employed a descriptive research design. 125 respondents made up the target population, from which the sample (95) was drawn. Both closed and open-ended questionnaires were used to gather data. Data analysis included descriptive statistics and correlation analysis. The results show that the correlation between sourcing and performance is positive and statistically significant, which implies that sourcing positively influences performance. The study concluded that the sourcing has a significant influence on the performance of iron sheet manufacturing firms in Nairobi County.  The study recommends that the iron sheet manufacturing firms should: Conduct comprehensive supplier market analysis to identify the most reliable and cost-effective suppliers of raw materials such as galvanized steel, zinc, and aluminum. Use the Total Cost of Ownership (TCO) approach instead of just price comparison, factor in transportation, lead time, quality, and reliability. Employ e-sourcing platforms for transparency, efficiency, and wider supplier access. Regularly evaluate suppliers based on quality, cost, delivery performance, and compliance.